Post by
Heywood_Silvers on Nov 28, 2023 9:14am
The good news is.....
The BoD capped RIO's investment below the 10% threshhold. Some might not like the extended 18 month timeline, but this allows for 1) gold prices to push closer to $3k before a final buyout and 2) allows for us long-term investors to obtain cheap shares as the impatient transfer their wealth to us patient investors.
Cheers!
Comment by
Marine2 on Nov 28, 2023 9:35am
Haywood Good one, "as the impatient transfer their wealth to us patient investors." How about us long term investors having to transfer their wealth to the grandchildren ! Many of us may not live long enough to see the fruits of this investment, another 5 yrs is to long ! IMO Copper would have to be $10 LB Gold $4,000 OZ by then ! M2
Comment by
LZG1220 on Nov 28, 2023 10:52am
Why do those buyers have to buy at the most expensive price when gold at the peak? As you wish, a hundred years from now, the price of gold will be 100000. Do you think that would be a better time?
Comment by
Marine2 on Nov 28, 2023 1:12pm
Heywood You say, "Many want a buyout now, but that is plucking the acorn out of the ground before it fully matures. Patience will reward those who can stay in the race." After 18 yrs," throw me the walker" I will stay in the race as long as I can ! M2
Comment by
Marine2 on Nov 28, 2023 2:29pm
jciarke Thanks for the explanation, that sounds a lot better then what I was thinking. M2
Comment by
Heywood_Silvers on Nov 28, 2023 2:22pm
I would ask IR for the specifics on that. RIO is not restricted from matching any bids from an outside party. We gotta get to that bid stage first though! :)
Comment by
Asdfghjk on Nov 28, 2023 9:51am
So May of 2025 is new Rio deadline if I read correctly? Not thrilled but definately NOT shocked at the announcement whatsoever. And we wait.
Comment by
jclarke042 on Nov 28, 2023 10:27am
I'd caution there is no deadline, there's a rights expiration date. In this case, it'll be around June 12, 2025. 18 months after this deal closes. Again: There is no deadline, just Rio's rights expiring, which as today shows is really no big deal to them. Big difference and counterintuitively, it'll make the waiting easier.
Comment by
MetalMinded on Nov 28, 2023 10:40am
IMHO Paul and the board need to stop agreeing with RIO that we need them more than they need us. Paul said many times that we have enough cash to get through permitting. We need to tell RIO they needs us more than we need them and then let them decide how to proceed. I do not see how this agreement in any way benefits existing shareholders.
Comment by
B4rryLyndon on Nov 28, 2023 12:09pm
Agreed. Does any understand why the dilution was necessary? Would it not have been possible to have extended the rights without dilution? Or does it not work that way...
Comment by
GardenManman on Nov 28, 2023 12:29pm
If no new money enter and just an extend agreement. Market would think:Rio give up and plan to leave and write off old investments. Management think they are smart. If no money enter. Today will drop 30%. Now. Only drop 3%. Smart action. Holy sheet.